mortality cost

  • The assumed mortality cost (cost of insurance) for any year is the contribution necessary from each policy to meet the death benefits anticipated during that year. It may be calculated by multiplying the net amount at risk at the beginning of the policy year by the death rate at the age attained by the insured at the beginning of the policy year.

    Internal Revenue Service 1

1Internal Revenue Service, Internal Revenue Manual 4.42.6 Glossary, http://­www.irs.gov/­irm/­part4/­irm_04-042-006.html (last accessed Dec. 22, 2009).